UPDATE 1-UK main index bounces back on WPP strength

A surge in WPP shares after it reported underlying sales that were better than feared helped the British blue-chip bourse snap a three-day losing streak on Friday, while a weaker sterling also lifted the dollar earners.

The FTSE 100 and the midcap index were both 0.7 percent higher by 0927 GMT with the former on course for its biggest intra-day gain in more than two weeks. WPP, the world's biggest advertising company, jumped 8 percent after results showed that although underlying net sales fell 0.4 percent in 2018, it was better than a forecast of a 0.5 percent dip.

Friday's rise placed WPP on course for its best day in nearly a year. London Stock Exchange Group added 4 percent after a rise in 2018 adjusted operating profit on strong growth in its clearing, capital markets and information services businesses.

News that index publisher MSCI would raise the weight of Chinese mainland shares in its global benchmarks also boosted British stocks that have a greater exposure to Asia. That, and a positive read-across from Italian luxury group Moncler's results sent Burberry 3 percent higher, while banking group HSBC also rose.

"I think the people who wished they'd bought into the market two weeks ago are buying in now," CMC Markets analyst David Madden said. "A lot of the negative news has been overlooked in recent weeks and traders are viewing that as a sign that negative news hasn't held sentiment back so far and is probably not going to hold it back in the near term."

All but one sector in the main index was in the positive territory and gains were led by financial shares, which were buoyed by hopes of avoiding a potentially disruptive no-deal Brexit scenario. Among a handful of stocks in the red, property website Rightmove slumped 5.5 percent and was the worst performer on FTSE 100 as it reported its slowest annual earnings growth in nine years.

Among midcaps, asset manager Jupiter Fund Management jumped 8 percent after it said its capital surplus had increased, margins were steady and costs were set to be lower in the year ahead. But hedge fund firm Man Group slipped 5 percent as its full-year results were hit by investment losses of $7.7 billion.

Industrial firm Coats Group also underperformed with a 5 percent drop as its full-year operating profit was hit by a rise in costs. Small-cap recruiter Robert Walters surged 9 percent as investors focussed on the positive 2018 results rather than a cautious tone set by the company on Brexit and its impact on confidence.

(Reporting by Muvija M in Bengaluru Editing by Keith Weir)